Cost Care Today At Heathwood Health Care Center Is $235/Day ($85,775/Yr)

Increases in health care expenses are the lowest they have been in the past 40 years. Health care costs increase at approximately twice the rate of inflation. With inflation being historically low, we have seen Nursing Home costs increase between 5-6%/yr since doing our survey over the past 6 years.

What It Will Cost In The Future

If costs increase at:
Year 5% 6% 7%
5 $117,832 $123,558 $129,560
10 $150,430 $165,390 $181,643
15 $191,985 $221,351 $254,780
20 $244,971 $296,150 $357,375

 

Medicare Will Pay...

In-patient care For skilled nursing care For home health care
All covered services for 1st 60 days after deductible of $912.
61-90 Days all covered services except for co-insurance of $228 per day. 60 Lifetime reserve days if hospitalized more than 90 days. Co-insurance $456/day.
All covered services for 20 days. All covered services for next 80 days except for daily coinsurance amount of $114/Day. Medicare pays nothing after 100 days. Medicare will not pay if services are primarily personal care or custodial services, such as assistance in walking, getting in or out of bed, eating, dressing, bathing, or taking medicine. Approved by home health agency for skilled nursing care, physical or speech therapy, confined to home, and under physicians care. Will not pay for personal or custodial care.

 

2004 Medicaid Spend Down Requirements

Single Person Can Keep: Married Couple Community Spouse Can Keep:
Primary Residence*
Car
Assets Of $4,150
Separate $1,500 Burial Fun
Personal Needs Amount Of $50 (Income)
(If In A Nursing Home)
Primary Residence**
$99,540
Separate $1,500 Burial Fund
Personal Needs Amount Of $2,489/Mo
($29,868/Yr)

*If prognosis is permanent confinement, they will force liquidation of primary residence.

**Under Medicaid recovery act, Medicaid can put a lien on the primary residence to cover their losses.

 

Gifts. Trusts & Medicaid

When the concern is Medicaid eligibility, remember there is a 3 year look back period for gifts, and a 5 years look back period for trusts. Even if Medicaid planners are successful in making their middle income and wealthy clients eligible for Medicaid, are those clients really better off? Suggest that they call 5 or 6 nursing homes that they feel would be acceptable to them, and have them ask if those facilities would be likely to accept them as Medicaid admissions. The big winner in the trust game is the Medicaid planner --- and maybe the children, but in most cases, it is not the people who give up their independence, control, and in many cases, their dignity.

 

Tax Deductibility

Federal Taxes New York State Taxes

Tax qualified long-term care premiums are included as part of the medical expense deductions for those who itemize deductions. Medical expenses must exceed adjusted gross income by 7.5%; the amount over this can be deducted as per chart.

Eligible Deductible Ltc Premiums
Limit by age 2004 2004
Age 40 or less $260 $270
Ages 4l 50 $260 $510
Ages 51 60$980$1,020
Ages 61 70$2,699$3,400
Ages over 70$3,250$3,400

Long-term care premiums will be eligible for a 20% tax credit for both individuals and businesses. (If your premium is $2,000, your taxes will be reduced by $400.)

Eligible Deductible Ltc Premiums
Limit by age 2003 2004
Ages over 70 $3,130 $3,250

 

 

 

Mintco Financial, Inc. is not affiliated with LifeMark Securities Corp. Registered Representative/Securities and Advisory Services offered through LifeMark Securities Corp. 400 West Metro Financial Center, Rochester NY 14623 (585)424-5672 or 1-888-MINTCO-8.